Fed, Treasury officials met to discuss US defaultTreasury, Federal Reserve, New York Fed chiefs met to discuss implications of US debt default
By The Associated Press

WASHINGTON (AP) ' Officials from the Federal Reserve and U.S. Treasury met Friday to discuss what would happen if the nation defaults on its debt, a scenario that could occur next month if Congress doesn't raise the nation's borrowing limit.

The Treasury says Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke met, along with Federal Reserve Bank of New York President William Dudley, to discuss "the implications for the U.S. economy if Congress fails to act."

In a joint statement the group says it is confident Congress will act soon. The officials offered no specifics on contingency plans.

The Treasury says the U.S. will default if the nation's $14.3 trillion borrowing limit is not increased by Aug. 2. President Barack Obama and Republican lawmakers have been at an impasse for weeks.